Head of Public Affairs at Bitpanda, Benedikt Faupel, raises crucial issues regarding the real harmonization of MiCA regulation in the European Union. Despite established standards, the legislative framework's implementation continues to showcase discrepancies among national regulators.
Criticism of Administrative Fragmentation
Benedikt Faupel expressed his concerns during the German Blockchain Week. He noted that the Bitpanda platform holds three MiCA licenses, a record in the industry. "With MiCA, everything is much simpler", admits Faupel. Despite the positive changes, the promised harmonization remains largely theoretical. Different regulators interpret the rules in varied ways, leading to de facto different standards.
Challenges of Harmonization in Europe
Faupel pointed out that such fragmentation does not surprise observers familiar with the sector. "It’s predictable. It is not inherent to MiCA, but simply the result of trying to regulate a sector as young as crypto", he states. These discrepancies in rule application create a distortion of competition between European players, complicating the developmental strategies of companies on a continental level.
The Future of MiCA and Institutional Adoption
Bitpanda advocates for true consistency in rule implementation, enabling compliant companies to operate unimpeded across the entire European market. Faupel suggests that this convergence can only be achieved through gradual adjustments to the regulatory framework. He also highlights the importance of institutional adoption, like the partnership between Bitpanda and Deutsche Bank, which plans to offer crypto custody services to its clients next year.
MiCA represents a significant advance in the regulation of digital assets in Europe. However, without real harmonization of its application, its promises risk eroding. Bitpanda stresses the need for course correction before the EU loses its advantage in the global race to set crypto regulation standards.
